Understanding the 2010 Income Limits

By Jim Kroger, CPA, Thomas Stagg, CPA, and Stacey Lewis, CPA, Novogradac & Company LLP

The U.S. Department of Housing and Urban Development (HUD) on May 14 released income limits for 2010. HUD also announced on May 12 that it would eliminate the hold-harmless policy in estimating Section 8 income limits. These two developments could mean significant changes for owners and managers of affordable housing.

 

 

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History and the Hill: CDFI Fund Provides HTC Relief on NMTC Related Party Test

By John Leith-Tetrault, National Trust Community Investment Corporation

After years of waiting, the historic tax credit (HTC) industry has finally obtained a reprieve from the Community Development Financial Institutions (CDFI) Fund’s related party test (RPT), which has greatly complicated twinned federal historic and new markets tax credit transactions since the early days of the NMTC program. Because surveys show that about 10 percent of all NMTC transactions and 20 percent of qualified equity investments (QEIs) by dollar volume involve use of the HTC, this rule change could have a considerable impact on both credits. But first some background.

 

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Powerful Forces at Work in Renewable Energy

By Michael J. Novogradac, CPA

A great deal of attention has been focused recently on renewable energy as several lawmakers introduce legislation intended to encourage new and expanded energy projects; however, challenges are mounting as owners and developers struggle to meet the deadlines and requirements of legislation already passed. Let me start this month's column with a rundown of some of the proposed legislation.

 

 

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Q&A	State Taxation of Section 1603 Grants

By Tony Grappone, CPA, Novogradac & Company LLP

Question: Are payments received by taxpayers under section 1603 of the American Recovery and Reinvestment Act of 2009 includible in gross income for state income tax purposes?

Answer: For property located in California, cash grant payments under Section 1603 are excluded from California gross income; however that may not be the case in every state.

 

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Google’s Investment in Affordable Housing Gets Results

By Jennifer Dockery, Staff Writer, Novogradac & Company LLP

Google Inc.'s first low-income housing tax credit (LIHTC) investment will end 227 California seniors' search for affordable housing. In March the search engine company made a $25 million investment in two California affordable housing properties. The investment will fund the construction of Fair Oaks Plaza in Sunnyvale, Calif. and the acquisition and rehabilitation of Regency Towers Senior Housing in Inglewood, Calif. Google, one of the few companies outside the financial services industry to invest in LIHTCs, made the investment through a fund with Union Bank's community development finance division.

 

 

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A report from the National Low Income Housing Coalition (NLIHC) concluded that the recession has worsened an already severe housing crisis.

 

The National Affordable Housing Management Association (NAHMA) last month released the NAHMA 2010 Affordable 100, a list of the 100 largest affordable multifamily property managers ranked by affordable unit counts.

 

On April 22, the Department of Housing and Urban Development (HUD) and Treasury Department published a notice seeking public input on establishing a more stable and sound housing finance system.

 

In late April Ohio lawmakers considered two bills aimed at making the state's tangible personal property tax on generation for wind and solar projects competitive with other states.

 

The Community Development Financial Institutions (CDFI) Fund is soliciting comments concerning the conflict of interest reporting requirements for contract readers of applications submitted for funding or tax credit allocation authority under the CDFI Fund's award programs.

 

The Ohio Department of Development announced the receipt of 50 applications from 14 cities in round four of the Ohio Historic Preservation Tax Credit program.

 

The Internal Revenue Service (IRS) has posted an updated Form 4255, Recapture of Investment Credit.